VALUE AND EXPLOITATION UNDER CAPITALISM

Capitalist produces commodities by combining certain inputs and sell above the cost of these inputs. BUT HOW DOES THE CAPITALIST ACHIEVE THESE MAGICAL RESULTS..??? Example: A producer of rubber tire buys a)Labour power of labour worker b)Quantity of Rubber C)Machienery

 Suppose that a producer of rubber tires buys the labour power of rubber workers a quantity of rubber and some machienery to produce rubber tires. Suppose also that an average worker uses up in a day,rubber that require 3hours in a day. Assuming that the product of one hr of labour is priced at $2,then the price of rubber used up is $6

Value(Price) of Output of Rubber Tires Produced in One Day by One Worker

RAW MATERIALS Rubber used up =3hrs Lobour time 3hlt x $2 $6

Machinery worn out

Labour power expended Value(or Price) of Rubber tire

=2hrs Labour time

2hlt x $2

$4

=8 hrs Labour time

8hlt x $2

$16

=13hrs Labour time

13hlt x $2

$26

 On the cost side the rubber used costs the capitalist the value of 3hrs labour time that is $6 while the machinery worn out cost the capitalist the value of 2hrs labour time that is $4 What is the cost to the capitalist of 8hrs of present labour power by one worker ???

 This cost is not determined by the value of what the worker produces but by the value of workers labour power in the market place that is the going wage rate The wage rate of workers like the value of any commodity depends on how much labor time is required to produce it. What constitutes the production of a worker??

All the things required to get the worked ready to work in a factory this is why workers with higher education cost more. Average wage is strongly influenced by the degree of employment, and also by the struggle of workers and capitalist In other words between set by the culturally given need and the maximum set by the workers whole product, the actual wage is determined by the organized power of the worker versus the business So in the above example the average wage amounts to value of 4hours labour a day, this 4hours labour time is then priced at $2 x 4 hlt = $8

 The mysterious source of profit = price cost = $26 - $18 = $8 This $8 is the surplus value or profit going to the capitalist SURPLUS VALUE = VALUE OF WORKERS PRODUCTVALUE OF WORKER =$8 Exploitation is defines as the hours of labour expended by workers above and beyond the hours necessary Which is the source of all property income..!!